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V0870-16 9 March 2016 · SG de Impuestos sobre el Consumo Criterion in force
IVA · tipo superreducido

Residential and day care services taxed at 4% when provided via administrative contract with fixed prices

A City Council has requested clarification on the VAT applicable to the management of a residential and day care centre for the elderly. The DGT clarifies that these services may be exempt, or subject to 4% or 10% VAT, depending on the providing entity and the method of procurement.

The question raised

Applicable tax rate for care services.

The DGT's ruling

Telecare, home help, day and night center, and residential care services are taxed at 4% if provided in contracted places or through prices derived from an administrative contract where the Administration sets the rates. If the service is provided under a private, non-contracted regime with freely agreed prices, it will be taxed at 10%. On the other hand, social benefits provided by social entities are exempt from VAT.

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